Correlation Between Strix Group and Zalando SE
Can any of the company-specific risk be diversified away by investing in both Strix Group and Zalando SE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Strix Group and Zalando SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Zalando SE, you can compare the effects of market volatilities on Strix Group and Zalando SE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Strix Group with a short position of Zalando SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Zalando SE.
Diversification Opportunities for Strix Group and Zalando SE
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strix and Zalando is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Zalando SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zalando SE and Strix Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Strix Group Plc are associated (or correlated) with Zalando SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zalando SE has no effect on the direction of Strix Group i.e., Strix Group and Zalando SE go up and down completely randomly.
Pair Corralation between Strix Group and Zalando SE
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the Zalando SE. In addition to that, Strix Group is 1.47 times more volatile than Zalando SE. It trades about -0.17 of its total potential returns per unit of risk. Zalando SE is currently generating about 0.14 per unit of volatility. If you would invest 2,762 in Zalando SE on September 1, 2024 and sell it today you would earn a total of 180.00 from holding Zalando SE or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Strix Group Plc vs. Zalando SE
Performance |
| Timeline |
| Strix Group Plc |
| Zalando SE |
Strix Group and Zalando SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and Zalando SE
The main advantage of trading using opposite Strix Group and Zalando SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Zalando SE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zalando SE will offset losses from the drop in Zalando SE's long position.| Strix Group vs. Penn National Gaming | Strix Group vs. Magnachip Semiconductor | Strix Group vs. ELMOS SEMICONDUCTOR | Strix Group vs. GAMING FAC SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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